Exchange-Rate Unification with Black Market Leakages : Russia 1992

Author/Editor:

Linda S. Goldberg

Publication Date:

February 1, 1993

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

In 1992 Russia unified the multiple exchange rates that had applied to international transactions. This paper describes the multiple exchange rate system that existed in Russia prior to mid-1992 and undertakes a theoretical exploration of the effects of the exchange rate unification that took place in July 1992. The model developed here allows for leakages between official and black markets and permits flexibility of the exchange rates in both official and parallel currency markets. Within this multiple exchange rate system with black market leakages, we trace the dynamic effects on official and parallel foreign exchange markets of changes in the types of policy instruments associated with Russia’s exchange rate regime reform. These instruments include adjustments of pegged interbank market exchange rates, rates of foreign exchange surrender taxation, and rates of taxation of capital account transactions.

Series:

Working Paper No. 93/13

Subject:

English

Publication Date:

February 1, 1993

ISBN/ISSN:

9781451924794/1018-5941

Stock No:

WPIEA0131993

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

44

Please address any questions about this title to publications@imf.org